Page 4 - Lesson Note

Operating Software is a set of programmes that is used by computers for various
purposes. Operating Software is essential part of computer system in absence of
operating software computer cannot operate. There are many operating soft- wares
like Windows, Excel etc.

Utility Software
Utility Software is a set of computer programmes used to perform supporting
operations in a computer. Utility Software are highly specialised and designed to
perform only a single task or a small range of tasks.

Application Software
Application Software is the set of programmes which is designed and developed for
performing certain task like accounting, word processing etc. for example Tally is the
application software.

Accounting Information System (A1S)
Accounting Information System is a system of collecting, processing, summarising
and reporting information about a business organisation in monetary terms. It
maintains a detailed financial record of the business operations and transfer the data
into valuable information.

So, Accounting Information System (AIS) is a sub-system of MIS. AIS is a struc- ture
that allow its users to collect and use business data.

Application of Computers in Accounting
1. Recording of transactions: Record the all business transactions properly and
timely.
2. Draw all ledger accounts: Computers prepares all ledger accounts by given
transactions, like cash, bank, debtors, sales a/c etc.
3. Preparation of Trial Balance: It prepares the Trial Balance according to ledger
accounts.
4. Preparation of Final A/c: It has utility to prepare Trading A/c, P&L A/c and
Balance Sheet.
Features of Computerised Accounting System
Computerised accounting system is based on the concept of database. This system
offers the following features:

(1) Online input and storage of accounting data.
(2) Printout of purchase and sales invoices.
(3) Every account and transaction is assigned a unique code.
(4) Grouping of accounts is done from the beginning.
(5) Instant reports for management, for example: Stock Statement, Trial Balance,
Income Statement, Balance Sheet, Payroll Reports, Tax Reports etc.
Automation of Accounting Process